German dairy price increases

There are reports that German dairy product prices are about to increase with the retail price of milk expected to rise by 50%, this is going to put pressure on German consumers who are going to have to spend more than the 11.3% of their food budget on dairy products.

It is stated that the rise in price is partly due to high demand from China. China’s demand for milk is increasing by around 25% per year and they are reported to be buying a third of the worldwide production, and with Germany - who produce 27 billion litres a year - being a major supplier to China, this is putting pressure on supplies and consequently on their milk price.

At farmgate level, price rises have already been seen with German processors Nordmilch and Humana putting their prices up to €30 per 100kg, this is an increase of €4 (13%) for Nordmilch.